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Archive for February, 2009

There are two types of life insurances – Permanent and temporary. Most people have some form of temporary insurance which may be term insurance policy, mortgage insurance or group insurance, but some people do have life insurance or universal life insurance as permanent insurance. Low cost term life insurance means the lowest cost policy offering maximum benefits at low premium. The term low cost term life insurance is a death benefit protection with no additional benefits.

Why Term Life Insurance
We go in for life insurance for a variety of reasons. Some of the possible reasons are family considerations, debts, funeral expenses, etc. We all look for the low cost term life insurance. Just knowing that low cost term life insurance is cheaper than permanent life insurance is not enough to select a policy. You need to educate yourself more if you really want to benefit from a low cost term life insurance . If you do not smoke, you have low cholesterol levels, normal blood pressure, no life threatening disease, not involved in a dangerous or a hazardous job or you are traveling through safe countries you are eligible for short term life insurance.

Term life insurance is best suited for young people. This is because at young age you can buy a large value policy for a longer period at affordable low rates.

Types Of Term Life Insurance
There are three types of term insurance.

Decreasing Term Insurance: In this type of insurance the insurer considers all financial responsibilities to be temporary and an individual prefers it to off set these responsibilities. This type of insurance is popular for covering home mortgage.

Level Term Insurance: In this kind of insurance, premium remains same for the specified period of insurance which could be anything from 10 to 30 years. The cost of annual renewable term rates is also averaged by the insurer. It takes care of short term cover or intermediate term debts. Some level term insurance also includes renewal options.

Annual Renewable Term Insurance: In this type of insurance the premium is paid at a slightly higher rate for one year of policy coverage for a specified period of time varying from 10 to 30 years. As the age increases the premium also increases and becomes nonviable when the value approaches face value.

Some people prefer discount term life insurance especially those with meager incomes. Though it is a good means of saving money but the benefits offered may not be to your liking.

The best way to find the best insurance is to make a thorough study of the policies offered by different insurance providers or get information from those who are already insured.

Of all the keys to creating abundant wealth there is probably none more important than paying yourself first! This is not money that you spend on yourself but more to the point, money you invest in yourself. The long term rewards of adopting this ‘habit of the wealthy’ can’t be stressed enough! You see, it’s not just about building wealth but the things you learn in the process.

Because we are not taught such things in school our introduction to the world of money is often started on a poor footing. The ease of borrowing money and persistent advertising gears us up for a life of spending. When we are young the message we hear is not the one we should be hearing. We are seduced by the money moguls into thinking that immediate gratification is ok. The trap is primed; welcome to shark ‘in(fv)ested’ waters!

Jim Rohn once said that the difference between the rich and poor is that the poor spend their money and invest the rest whilst the rich invest their money and spend the rest. Because most of us adopt an attitude of ‘have money will spend’ we fall into the first category. Little do we know we are setting ourselves up for a life of servitude!

Are you a slave to money or a master of it?

When we borrow money we effectively become an asset of someone else. Our money starts to control us because we are committed to the repayments we have to make. In an effort to keep our current standard of living we borrow some more and suffer the effects of compound interest in reverse. The cycle gets even harder to break because we often borrow money to invest in more liabilities. The very thing we purchased is an additional money drain that we often don’t account for in our budgeting.

When we ‘pay ourselves first’ our philosophy for building wealth is based on solid foundations. The additional responsibility of investing money wisely is a great introduction to financial management.

With a bit of discipline, investing in yourself is not such a hard thing to do. There are many good investment opportunities that allow people to make small investments on a monthly basis. By taking these opportunities we begin to understand how money works and what it means to be on the right side of compound interest. We begin to make money work for us and spend less time working for it. Our focus changes from investing in liabilities to investing in assets. This is the true road to building wealth beyond reason!